Bermudian-based Argo Group, purchased in February by Brookfield Reinsurance for $1.1 billion, has reported a second-quarter net loss attributable to common shareholders of $500,000.

That compares with a net loss attributable to common shareholders of $18.9 million for the second quarter of 2022.

Argo said it continues to expect the pending merger with Brookfield to close in the second half of the year, subject to customary closing conditions, including receipt of required regulatory approvals.

"Our second-quarter performance further reflects the proactive steps we are taking to prioritise improving profitability," said Argo executive chairman and chief executive Thomas A. Bradley.

"Our top-line results reflect our deliberate and disciplined actions in certain lines of business.

“However, we continue to achieve growth across the rest of the portfolio, notably in our environmental, inland marine and casualty segments. This is a testament to the importance of a diversified book of specialty businesses.

“We have remained focused on lowering expenses and reducing earnings volatility. The success of these efforts was demonstrated in the second quarter by further improvement in the expense ratio and a low level of catastrophe losses despite elevated industry catastrophe losses during the period.”

He added: "We also continue to collaborate closely with Brookfield Reinsurance on integration planning as we wait for the required regulatory approvals on the pending merger, and anticipate an orderly transition for our customers and business partners once the transaction is completed."

In the second quarter, gross written premiums of $561.9 million decreased $170.2 million, or 23.2 per cent, primarily owing to businesses the company has sold and exited.

Gross written premiums within the company’s continuing business decreased approximately 0.8 per cent from the previous year’s second quarter.

Earned premiums of $329.9 million decreased $124.4 million, or 27.4 per cent year-over-year.

The combined ratio of 106.8 per cent increased 10.6 percentage points, driven by a higher loss ratio.

The loss ratio of 73.2 per cent increased 12.4 percentage points, compared with 60.8 per cent for the prior year’s second quarter.

Total catastrophe losses were $3.1 million for the quarter, or 0.9 percentage points on the loss ratio. In comparison, catastrophe losses in the prior year second quarter were $2.5 million or 0.6 percentage points on the loss ratio.

Catastrophe losses for the first six months of 2023 were 40 per cent lower than the same period in 2022, the company said.

The expense ratio of 33.6 per cent improved 1.8 percentage points from the prior-year second quarter.